Gibbons to Obama: State might reject some stimulus funds
Wednesday, March 11, 2009 | 3:34 p.m.
Sun Archives
- Strings on money for jobless create knots (3-4-2009)
- Gibbons undecided about accepting jobless money (3-2-2009)
- $6 million in stimulus aid on its way to Las Vegas area (3-2-2009)
- Stimulus scroogery was fated for state (3-1-2009)
- Movers looking for work increasing state's jobless rate (2-6-2009)
Gov. Jim Gibbons sent a letter to President Barack Obama today notifying him that Nevada might reject part of the federal stimulus package.
Governors have a 45-day window, beginning Feb. 17, to claim funds allocated to the states. In his certification letter today, Gibbons said he is a believer in smaller government and has concerns about the size of the stimulus package.
"With these concerns in mind, I would like to also provide notification that there may be portions of the stimulus package that Nevada will reject, due to the constraints and current matching or future funding expectations that the funding would require," Gibbons wrote.
Several Republican governors are turning down a portion of the stimulus money because it comes with strings attached, such as matching dollars from the states.
Gibbons also wrote that "the funds will provide relief to otherwise necessary state budget reductions and will provide jobs in Nevada."
Discussion: comments so far…
Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy. Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their Las Vegas Sun account. For more on this change, read our story about how it works and why we did it.
Only trusted comments are displayed on this page. Untrusted comments have expired from this story.
No trusted comments have been posted.
Post a comment
Most Popular
- Viewed
- Discussed
- E-mailed
- Superstar Whitney Houston dies at 48
- Two dead after accident in downtown Las Vegas
- Instant Analysis: Debating whether UNLV should continue series with San Diego State
- Police looking for man in white Ford Explorer
- Dining Guide: 2012 Valentine’s Day options in Las Vegas
- Color from the scene at Thomas & Mack Center: We have a wire job! Rebels win, and Louie Armstrong sings!
- Four people injured in car accident
- Blog: Justin Hawkins’ steal seals UNLV’s thrilling 65-63 victory against San Diego State
- UNLV makes key plays down stretch to hold off San Diego State 65-63
- After Nevada and Florida wins, Mitt Romney trying to prove he’s ‘severely conservative’ to CPAC base
Blogs
The Kats Report
Color from scene at Thomas & Mack: We have a wire job! Rebels win, and Louie Armstrong sings!
South Point owner Michael Gaughan's take on 'Vegas Stripped': 'I'll give it an 8' (4 Comments)
Author relishes writing the life story of ‘larger-than-life’ Oscar Goodman (3 Comments)
Elsewhere
Landowner: All roads could lead to Uxbridge casino
Revel reveals smoke-free casino opening
Cirque du Soleil show in Sands China casino to close this month
Meet the woman behind Sheldon Adelson
The Sun
Locally owned and independent for more than 50 years.



WTF! How stupid is Jim gibbons?
Tax us all, take our dollars, and then send back pennies that have to be match with local tax increases. What a plan. The insulting part is Obama and Reid think this makes us lucky. Quit helping please, we can't afford any more help.
Hey Jimbo, I don't remember you asking the people of Nevada whether we want to refuse the money or not. But I guess that Nevada is in such excellent economic shape that we don't need any money, right?
The Luv Guv strikes again.
I'm so happy he's looking out for our "best" interests. We don't need more and better roads. I never realized how much I enjoy waiting in traffic along the 15. Thanks LuvGuv for doing that!
Gov. Jim Gibbons may be the worst one in this country.
Hey, I am from Alberta Canada. Our Government is going to borrow 6 Billion. If your Governor Jim doesn't want the cash...can you send it our way?? And if you really don't need it...why charge tourists an additional 3% hotel tax?? Did I say...duh?? just how dumb is your Governor anyway???
To answer your question EdmontonGuy: very. Very, very stupid.
I'm trying to wrap my head around the reasoning here. First, you have this passage from his certification letter to Obama,
"Of significant further concern is the fact that the ARRA returns federal money to Nevada at a rate significantly lower than what our taxpayers pay in federal taxes. This "donor status" is indefensible, considering Nevada finds itself one of the hardest hit states during this current economic downturn. We are experiencing record unemployment rates and unprecedented shortfalls in state revenues needed to adequately fund core government services such as education, public safety and healthcare."
Gibbons is apparently upset that Nevada doesn't receive enough earmarked funds. He ignores the fact that some of the funding we do not receive is due to inadequate matching funds (i.e., we don't fund services at a level that earns us matching federal funding).
But the "donor status" argument is rendered nil when he says he's going to TURN DOWN FUNDING. The legislature can make a few temporary changes to the way unemployment benefits are granted and we would receive billions in aid from the federal government.
Rather than make those temporary changes, Gibbons is happy to forfeit federal aid.
Just a general rule, Jim, you can't complain about not receiving funding you refuse to accept.
Couple this with the return on investment in unemployment benefits (they, dollar-for-dollar, return FAR MORE than tax cuts). Or, as Orszag puts it, "Research has shown that the unemployment insurance system is among the most effective dollar-for-dollar economic stabilizers that we have in terms of counterbalancing periods of economic weakness."
Gibbons wants to turn that funding down in order to score brownie points with his sycophantic supporters? Ridiculous.
This governor has to be nuts!! We have one of the highest unemployment rates in the country, our school system is shot, we are totally dependent on the gaming industry that is seeing pretty tough times, and he has the nerve to return money. This guys needs to be impeached as he continues to do virtually nothing. This is amazing!
A reminder of the genius of those who didn't like Dina Titus's accent or thought she was too liberal, and of the genius of Democratic legislators who didn't have the guts to impeach him in the Assembly and bring him to trial in the state senate, and of the genius of Nevada Democrats who didn't try to recall this idiot.
>> Tax us all, take our dollars, and then send back pennies
Hey Neiman, I elect YOU to go over to Iraq and get our DOLLARS back. Let us know how that goes. (hint, some of them are in the Cayman Islands in the pockets of King Hal management)
Just think that your "tax cut" by way of a payroll tax reduction this year will be taxed
next year as income! They get it one way or another!
Can we please have a new govt?
It appears from the ARRA (Recovery Act) that Gibbon's acceptance or rejection is not the final word. While the explanation offered on the recovery.com site is broad - it allows the legislature to get the funds that the governor might return.
Text of Section 1607:
SEC. 1607. (a) CERTIFICATION BY GOVERNOR..Not later than 45 days after the date of enactment of this Act, for funds provided to any State or agency thereof, the Governor of the State shall certify that: (1) the State will request and use funds provided by this Act; and (2) the funds will be used to create jobs and promote economic growth.
(b) ACCEPTANCE BY STATE LEGISLATURE..If funds provided to any State in any division of this Act are not accepted for use by the Governor, then acceptance by the State legislature, by means of the adoption of a concurrent resolution, shall be sufficient to provide funding to such State.
(c) DISTRIBUTION..After the adoption of a State legislature's concurrent resolution, funding to the State will be for distribution to local governments, councils of government, public entities, and public-private entities within the State either by formula or at the State's discretion.
Our idiot Governor knows that he will never be elected to anything again...so..this is his only way to maybe get some national attention. Rejecting the money to extend unemployment..are you kidding me.